Protecting Assets in a Bankruptcy
No one wants to file bankruptcy. If you end up needing to file, then you need to be careful that you don’t lose anything besides the debts in your bankruptcy. Kansas provides fairly good protection against what little you have – these are called exemptions. In Kansas, you generally get to keep the following when you file a chapter 7 or chapter 13 bankruptcy:
- Your house
- Your household goods and furnishings
- Your retirement accounts
- Your car (2 cars if married)
- Tools of your trade
- Jewelry up to $1,000 ($2k if married).
There are also other less common exemptions available. If you have not lived in Kansas for two years at the time you file, you may have to look at your former state to see what kind of exemptions are available. This can be tricky, and some care is warranted. A little planning can save what little you have when you file. Be careful!